Other Resources

Federal Loans to Parents

Colorado State University participates in the William D. Ford Direct Loan Program (Direct Loans). This means that the PLUS Loans we offer are funded by the Department of Education to the parent, on behalf of the student. A PLUS Loan is automatically offered with the rest of a student's aid after submitting a FAFSA application. You, the parent, are responsible to repay your parent loans even if your student does not complete their program. You are legally obligated to repay your loans so we encourage parents to fully read and understand the terms and conditions before accepting a loan.

The minimum requirements for consideration of any federal loan is a completed FAFSA application, the student be admitted into a degree seeking program and enrolled at least half-time. You must be the natural/adoptive parent or be a stepparent whose income information was included on the FAFSA to be an eligible borrower.

- Credit Information

A PLUS loan is contingent on a credit check of the parent borrower. Parent PLUS Loans are not based on your credit score or income-to-debt ratio. Parent PLUS Loans are approved for parents who do not have an adverse credit history. Your loan will be reported to credit agencies and becomes a part of your credit history.

Federal regulation classifies an individual as having an adverse credit history if they are 90 days or more delinquent on any debt as of the date of the applicant's credit report, or that have been placed in collection or charged off (written off) during the two years preceding the date of the applicant's credit report, and the total combined outstanding balance of those debts is greater than $2,085; or any of the following conditions during the five year preceding the date of the credit report: default determination, bankruptcy discharge, foreclosure, repossession, tax lien, wage garnishment, or write-off of a Title IV debt. For more detailed information on adverse credit history please go to https://studentaid.ed.gov/sa/types/loans/plus

You will be notified in writing by Direct Loans if your credit check is denied. You will have the option to appeal the credit decision or obtain an endorser if you still want to pursue the Parent PLUS Loan. If you successfully appeal the denied credit decision or obtain an endorser you will need to complete PLUS Counseling through www.studentloans.gov

If you do not appeal the credit decision or obtain an endorser, your student can contact Student Financial Services regarding possible additional unsubsidized loan in the student's name.

- Next Steps

If you, the parent, did not previously complete a PLUS Direct Loan electronic Master Promissory Note (eMPN) for your student, complete it online at www.studentloans.gov.

The parent who submitted their information for a credit check must be the same parent who completes the MPN.

Each semester, after all requirements are met, your Parent PLUS Loan will be paid to your student's University account. It is applied first to the total University expenses for the semester. If your student's total financial aid (other than work-study) exceeds the total University expenses, your student will have a credit balance that will be refunded to them.

- Interest Rate

Date of First Disbursement

PLUS

Before July 1, 2016

6.84%

7/1/16 - 6/30/17

6.31%

- Fees

Date of First Disbursement

Origination Fee % for Direct PLUS Loans

on or after 10/1/15 and before 10/1/16

4.272%

on or after 10/1/16 and before 10/1/17

4.276%

Repayment and Deferment

Repayment begins 60 days after the loan is fully disbursed if the borrower does not request a deferment. The parent borrower can contact their servicer after the loan has disbursed to request a deferment for up to 6 months after the student leaves school or drops below half-time. Interest will be capitalized at the end of the deferment period.

Loan Repayment Charts

Standard Repayment Plan

Extended Repayment Plan

Graduated Repayment Plan

Monthly Payment Amount: fixed

Monthly Payment Amount: fixed

Monthly Payment Amount: gradually increases about every two years

Minimum Payment: $50

Minimum Payment: $50

Minimum Payment: greater of monthly interest or half the payment under the Standard Repayment Plan

Maximum Repayment Period: 10 years

Maximum Repayment Period: varies from 25 to 30 years, depending on amount owed

Maximum Repayment Period: varies from 12 to 30 years, depending on amount owed

Amount Owed at Repayment

Monthly Payment

Years to Repay

Total Amount Repaid (With Interest)

Monthly Payment

Years to Repay

Total Amount Repaid (With Interest)

Monthly Payment

Years to Repay

Total Amount Repaid (With Interest)

$2,500

50

5

$3,042

Not Available

$25

12

$3,940

$5,000

60

10

$7,248

$34

12

$8,471

$7,500

91

10

$10,872

$51

12

$12,707

$10,000

121

10

$14,496

$66

15

$18,783

$15,000

181

10

$21,744

$99

15

$28,175

$20,000

242

10

$28,992

$132

20

$43,351

$25,000

302

10

$36,240

$165

20

$54,189

$30,000

362

10

$43,488

$249

20

$59,777

$198

20

$65,027

$40,000

483

10

$57,984

$306

25

$91,824

$263

25

$98,767

$50,000

604

10

$72,480

$383

25

$114,780

$329

25

$123,459

$60,000

725

10

$86,976

$436

30

$156,989

$395

30

$166,818

$70,000

846

10

$101,472

$509

30

$183,154

$461

30

$194,620

The information provided is accurate as of the date of publication (February 2015) and may change without notice. Colorado State University is an equal opportunity/affirmative action institution and complies with all federal and Colorado State laws, regulations, and executive orders regarding affirmative action requirements in all programs. The Office of Equal Opportunity is located in 101 Student Services Building.